MALAYSIAN BROKER SEEKING JAPANESE-ORIGIN SERVO

S E C R E T STATE 006399 SIPDIS E.O. 12958: DECL: 01/23/2034 TAGS: MTCRE PARM PREL MNUC ETTC KSCA JA IR SUBJECT: MALAYSIAN BROKER SEEKING JAPANESE-ORIGIN SERVO MOTORS FOR IRANIAN UAV PROGRAM (S) REF: A. 08 STATE 109147 ¶B. 08 STATE 097993 ¶C. 08 TOKYO 002554 ¶D. 07 STATE 113257 ¶E. 07 TOKYO 003805 ¶F. 07 TOKYO 004687 Classified By: ISN/MTR DIRECTOR PAM DURHAM, REASON: 1.4 (C). ¶1. (U) This is an action request. Embassy Tokyo, please see paragraph 4. ¶2. (S) Background/Purpose/Objective: Since August 2007, the U.S. has discussed with Japan efforts by Iran's unmanned aerial vehicle program (UAV) to procure equipment produced by the Japanese firm Tonegawa-Seiko using intermediaries in Malaysia (Reftels). Most recently, in October 2008, we alerted the Japanese government to an effort by the Malaysia-based firm Evertop Services Sdn Bhd to procure Tonegawa-Seiko servo motors that could be used in UAV applications (Ref A). Evertop Services is an entity that previously has facilitated purchases by Iran's UAV program. ¶3. (S) We now would like to provide the GOJ additional information on this case. In particular, we would like to advise the GOJ that in late December 2008, a Malaysia-based Iranian broker was working to purchase one thousand Tonegawa-Seiko servo motors and accessories on behalf of Iran's Farazeh Equipment Distributor Company (FEDCO). FEDCO is the parent company of Evertop Services and has previously been involved in efforts by Iran's UAV program to procure Japanese-origin, dual-use items (Ref B). To facilitate this transaction, the Iranian broker planned to export the servo motors to a false Malaysian end-user, who would claim to be ordering the servo motors for light and ultra-light aircraft applications. We hope this new information will support Japan's ongoing investigation into this activity and help prevent Iranian intermediaries from procuring UAV-related items from sources in Japan. ¶4. (S) Action Request: Request Embassy Tokyo approach appropriate host government officials to deliver talking points/non-paper in paragraph 5 below and report response. Talking points also may be provided as a non-paper. ¶5. (S) Begin talking points/non-paper: (SECRET//REL JAPAN) -- We would like to follow-up with you on a matter of proliferation concern and request your assistance in investigating this activity. -- In October 2008, we shared with you information indicating that an individual associated with the Malaysia-based firm Evertop Services Sdn Bhd was seeking to procure 85 model PS050 servo motors from the Japanese firm Tonegawa-Seiko. -- We noted that this activity coincided with a request to Evertop Services by Iran's unmanned aerial vehicle (UAV) program for information on 350 model PS050 servo motors and 40 model SSPS105 servo motors produced by Tonegawa-Seiko. -- We believe this activity is part of a long-standing effort by Iran's UAV program to procure servo motors and other equipment produced by Tonegawa-Seiko through Malaysia-based intermediaries. -- We now would like to share with you additional details about Iran's efforts to acquire these servo motors. -- Specifically, we understand that in late December 2008, a Malaysia-based Iranian broker named Hamed Ghazvinian was working to purchase one thousand model PS050 servos and accessories manufactured by Tonegawa-Seiko on behalf of Iran's Farazeh Equipment Distributor Company (FEDCO). -- FEDCO is the parent company of Evertop Services and other Iranian procurement companies operating in Malaysia. FEDCO has previously acted as a supplier for Iran's UAV program. -- To facilitate this transaction, Hamed Ghazvinian was making arrangements for these servo motors to be exported to a false Malaysian end-user, who would claim to be ordering the motors for use in light and ultra-light aircraft applications. -- We hope you will use this information to support your ongoing investigation into this activity and help prevent Iranian intermediaries from procuring UAV-related items from sources in Japan. -- We look forward to continuing cooperation with your government on nonproliferation and export control matters, and would appreciate hearing an update on the status of your efforts in this case at the earliest possible time. End talking points/non-paper ¶6. (U) Washington POC is ISN/MTR James Mayes (Phone: 202-647-3185). Please slug any reporting on this issue for ISN/MTR and EAP/J. ¶7. (U) A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON